What You Need Has Never Been Cheaper vs. What You Want

What You Need Has Never Been Cheaper vs. What You Want:

  • The chart below shows the ratio of Consumer Staples to Consumer Discretionary stocks is now LOWER than at the peak of the internet bubble
  • Embracing emotions, the market is obsessed with IPOs, SPACs and chasing quick profits
  • Kailash believes Staples offer an immensely valuable port in a storm of speculation
  • Although firms like Zoom and Tesla are priced for perpetual perfection, Kailash is uncertain if they will dominate their industries for even 5 years
  • In contrast – Kailash has high conviction that people will still smoke, drink, eat, clean their homes and put their kids in diapers for decades to come

See “The Case for Buying What You Know and Need” and “Income Investing: Staples & IT” for compelling historical evidence suggesting today is one of the best times in history to invest in a select group of staples.

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Disclaimer

The information, data, analyses and opinions presented herein (a) do not constitute investment advice, (b) are provided solely for informational purposes and therefore are not, individually or collectively, an offer to buy or sell a security, (c) are not warranted to be correct, complete or accurate, and (d) are subject to change without notice. Kailash Capital, LLC and its affiliates (collectively, “Kailash Capital”) shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information herein may not be reproduced or retransmitted in any manner without the prior written consent of Kailash Capital. 

Kailash Capital, in preparing the information, data, analyses and opinions presented herein, has obtained data, statistics and information from sources it believes to be reliable. Kailash Capital, however, does not perform an audit or seeks independent verification of any of the data, statistics, and information it receives. 

Kailash Capital and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.